It was announced in early June that Ford plans to discontinue the Mercury brand at the end of this year.

To those in the auto industry, this is not surprising news as Ford has alluded to its desire to concentrate on its more popular brands. It also shouldn’t be surprising since the Mercury brand currently accounts for less than a 1% market share in the US.

As part of Ford’s refocus, the company announced plans to expand the Lincoln lineup over the next four years.

Ford appears to be adopting the strategy used by both Chrysler and GM by aligning quality/status more with brand than with make or model.

I think the idea is that Lincoln would represent the luxury brand of the Ford Motor Company. Currently there are around 1,700 Mercury/Lincoln dealers in the United States (which will likely turn into Lincoln dealers soon).

Do you think the Lincoln brand, with an expanded lineup, can compete with the likes of Cadillac to be the king of American-made luxury cars?

In all of my excitement to report about Nissan’s March 30, 2010 press release on the all-new Nissan Leaf, I totally overlooked an announcement from General Motors. On the eve of the 2010 New York Auto Show (the same day Nissan issued its press release), General Motors announced that the new 2011 Chevy Volt would be available on showroom floors in November 2010. How could I have not blogged about this at the same time?

For those of you who don’t know, the Chevy Volt is also an electric car that, according the company’s website, can create its own electricity. When fully charged (accomplished by plugging the car in overnight), the car can run 40 miles on pure electricity. After about 40 miles, a “range-extending gas generator” kicks in, which recharges the battery and adds up to 300 drivable miles on a single tank of gas. The ability to have a car re-generate energy will be a strong selling point in why consumers should pick the Volt over the Nissan Leaf. A jump start on sales won’t hurt either.

So I have to ask: who has been holding out to be a part of the first generation of electric car owners?

Just seven months after a global recall of roughly 8.5 million vehicles, Toyota is enjoying increased car and truck sales. At the end of March, sales were expected to be 30-35% higher than they were last year. In the first ten days alone, sales surged a whopping 40% compared to early March 2009. Various incentives previously unheard of from Toyota, coupled with their effective catering to loyal customers have helped the company bounce back quicker than expected.

Some notable incentives include:

• Zero-percent financing for the first five years on its top-selling models
• The introduction of the “Toyota Auto Care Premium Package” that includes oil changes and other maintenance services for free over two years for the purchase or lease of any new vehicle
• Cash rebates ranging from $500 to $3,000 depending on the vehicle

Toyota made all the right moves to regain customer confidence and attract first-time buyers. The company admitted fault and was openly communicative with the press. They then made restitution with the aforementioned incentives to quickly resolve a crisis that might have left other competitors in dire straits. A crisis that could’ve ruined the Toyota brand and image seems to have only made the company stronger.

Progressive has all but stopped acquisition mailing. In 2009, they sent 90% fewer offers than in 2008. So far this year, Mintel Comperemedia has only tracked one auto insurance piece from Progressive. It was a card mailed by Florida Insurance Specialists to clients with a homeowner’s policy and offered a discount for Progressive auto insurance.

Progressive’s strategy to stop using direct mail is the opposite of GEICO, State Farm and Allstate, all of which have increased efforts. These auto insurance leaders have either maintained high mail volumes or increased mailings since last year.

GEICO, the largest auto insurance mailer, sends a letter as its top offer. Interestingly, it is not branded with any of the characters GEICO has developed. It does, however, have a call-to-action header: “Do not discard this letter without first visiting geico.com.”

Allstate and State Farm are next after GEICO. Each sends letters that feature a quote card, a box showing savings over the competition, and an agent’s phone number.

Maybe the reason Progressive has stopped mailing is because it is enamored with the overwhelming success of Flo and the Insurance Superstore campaign. But State Farm, Allstate and GEICO seem to be increasing direct mail alongside successful campaigns in other media.

How long will Progressive maintain reduced direct mail as part of its marketing strategy? Please contact me if you’re interested in exploring this idea further (DHayes@Mintel.com).

Wouldn’t it be nice to never have to stop at a gas station again in your life? Think about how it would feel, after a long day of work, to drive straight home as opposed to stopping at the gas station because your gas light came on. Imagine pulling into your garage, plugging your car into an outlet and walking into the house. Nice, right?

We continue to hear buzz about the new 2011 Nissan Leaf. The car, which runs entirely on electricity and does not produce any emissions, will be available in December 2010. Pricing for the car was announced on March 30, 2010, with reservations for the world’s first mass-produced electric car to begin on April 20, 2010.

On top of bragging rights of being one of the first Americans to own an all-electric car, new Nissan Leaf owners have the opportunity to receive a $7,500 federal tax credit, along with a variety of state and local incentives.

The Nissan Leaf comes with three years of roadside assistance, and those in California will have the opportunity to ride in the coveted carpool lane. And none of this addresses the amenities of the car, which features “an advanced navigation system and Internet/smart phone connectivity to the vehicle, including pre-heat/pre-cool and charging control,” according the company’s most recent press release.

Whose waiting for the April 20, 2010 start date?

Can Honda slip by?

With all of the issues clouding Toyota’s reputation in recent months, do you think that Honda will be able to sneak past the scrutiny Americans have on the automotive industry (Toyota specifically) despite announcing a recent brake recall?

The company recalled 410,000 Odyssey and Element models from 2007 and 2008 back on March 16, 2010. Honda seems to have taken on the approach of full disclosure and over-preparedness, with a company’s statement saying “although not all vehicles being recalled are affected by this issue, we are recalling all possible units to assure all customers that their vehicles will perform correctly.”

A detailed explanation of the causes associated with potential brake failure has been outlined by the company, but the company has also mentioned that it is still in the process of preparing a complete list of all vehicles affected.

It seems like Honda is trying to be transparent and forthcoming with a potential larger issue, but how will the public handle this news if the recall is extended? Will this change how Americans view Japanese cars? Could it mean a bump in sales for domestic automakers?

To counteract poor sales caused by recent recalls and safety issues, Toyota announced incentives to jumpstart sales this week. In addition to promoting attractive leasing options, the company is offering 0% financing for up to 60 months on its most popular models (eight in all).

Just last night, I saw a new commercial from Toyota that shows vehicle owners talking about their satisfaction with the purchase of their new Toyota cars. This seems to be the next step in gaining confidence back in the company, after using the media to publicly apologize and attempt to rectify the situation with extended service hours to make recall repairs. What’s done is done, and now it’s time to start rebuilding trust and confidence in the once (very) strong brand name.

Since I am not a Toyota owner, I can’t immediately relate to the situation. However, I have thought about how I would feel if my preferred automaker found itself in this predicament. I understand the company needs to address the situation on a number of fronts, especially to minimize eroding market share but I question, has Toyota done enough to reestablish confidence with existing customers? Will these efforts help foster or solidify future loyalty opportunities?

What a difference a year can make, right? Toyota, a company that was once considered the cream of the crop in the automotive world, is in the middle of potentially reputation-changing dilemma. The company even claimed the world’s largest car manufacturer position in 2008, largely due to the equivalence of the Toyota brand with high quality and dependability.

Fast forward two years and the company’s brand name hold a different position. Will Toyota’s current problems with defective gas pedals on a number of Toyota and Lexus models and malfunctioning breaks on the newest Prius model forever tarnish the company’s reputation?

Comments, though later retracted, from U.S. Transportation Secretary Ray LaHood have not helped Toyota’s brand situation. The company has been under the microscope with what is known, what has been hidden and what other problems may arise. And what about upcoming lawsuits? Future manufacturing problems?

I think it is safe to say that Toyota is far from being out of the woods, but do you think the company is doing enough to save its position as a reputable, reliable auto maker? How could they better communicate and reassure their publics?

GM announced on December 29, 2009 its intention to offer “deep discounts” on its remaining new Saturn and Pontiac vehicles. The company wants to move out the remaining inventory of the two discontinued GM brands.

According to CNN Money, GM agreed to pay dealers $7,000 for every new Saturn or Pontiac that was sold with a five-day period. The caveat was that the inventory would have to first be moved into the dealer’s rental or service fleets (pre-owned car inventory), in turn making them the first owners of the vehicle. This arrangement allowed dealerships to sell certain Saturn and Pontiac models at up to 46% off the manufacturer’s suggested retail price. This offer lasted until January 4, 2010 for dealers.

The offer created an opportunity for dealers to move inventory while giving consumers a great deal on a new car. Despite the discontinuation of the two brands, GM is committed to ensuring drivers and prospects that both Saturn and Pontiac models can be serviced at any GM dealership in the future.

Did anyone take advantage of the reduced pricing and purchase a new Saturn or Pontiac before the offer expired? I’m interested to see how it worked out.

Chevy has continued with its “Revolution” marketing strategy, gearing up to release three new automobiles in the next two years.

In less than one year (October 2010), Chevy will take its biggest risk with the release of its Chevy Volt to the public. The release of this electric car could also be the company’s largest payoff. First seen in the direct marketing space in August 2007, Chevrolet has continued to create hype for its first electric car through direct mail and email. We expect even more activity in upcoming months.

Chevy is also planning on introducing the 2011 Cruze during the third quarter of 2010 as a rival to the Honda Civic and other fuel-efficient economy cars. The Chevy Cruze is expected to have more interior space than the Honda Civic and come with a 1.4L Turbo engine, built with performance and fuel efficiency in mind. Marketing for the Cruze was first observed by Mintel Comperemedia in October 2008.

Finally, Chevrolet has plans to enter the mini-car market in 2011 with the Chevy Spark. The 2011 Spark has yet to be marketed within the US through direct mail or email. However, I expect we’ll start seeing Spark advertising soon.

With these new innovative products, Chevy is the automaker to watch in 2010. I’m also curious to see what the competition will do. Any predictions?